Financing Scam?

ShawnMcLeod · Jun 9, 2008

"I had been shopping around a script for a while when a producer took interest. After reading the latest draft, I was invited to a meeting at his Pittsburgh office. He told me that he loved the project for me, a first time director, because it was a genuinely emotional yet commercial story that could be filmed fairly cheaply.

He told me, that while he loved the project he wasn't going to go out on a limb if I wasn't and that the proposal package to investors would cost roughly $3500, but his company would take care of some of the cost, leaving my company to pay $2500 before they begin the package. The money would then be later recouped in the line budget under Developement, where I would get my money back.

I'm not sure if it ought to work this way, and as this is my first attempt at working with a producer to find funding, im a bit apprehensive."

Thank you.

Best,
Shawn McLeod

clive · Jun 9, 2008

I'm 90% certain this is a scam... but, just a few questions will sort this out.

You talked about his company and your company... did you go to him for a co-production deal? or were you just looking for a producer to take on your spec script?

If you're doing a co-production, where two companies work together to get a film made and distributed, then sharing the costs isn't unreasonable. However, before you got to the "sharing costs" part, you'd have to have entered into a co-production contract. This seems an unlikely option, because you don't sound like you've got the background to be brokering that kind of deal. (no offense meant)

If you're just a screenwriter, then it's a scam. If you're a writer and see this as your first directorial project... then it's a scam, because no production company in their right mind is going to attempt to raise money on a project by an unknown writer, with him attached as the director.

One of the things you could do is IMDB the producer to check what existing credits he has. If he has no existing credits for produced movies, then he's definitely a scam.

How this normally works is like this: screenwriter has a script... takes it to producer... producer likes script and believe he can make money from it... producer options screenplay and PAYS THE WRITER for the rights to develop the film. Sometimes a writer will defer the option fee until the back end... if the producer is some poverty struck, but talented indie and the writer believes it's in his best interests.

After that, what normally happens is the writer says "I'd like to direct" and the producer laughs so hard, he actually pees himself and says "You're a funny, funny guy... (beat), you were joking weren't you?"

Now, it seems to me that the money is flowing in the wrong direction. You wrote a script, he wants to produce it. In most deals he would have to pay you, or at least promise to pay you for the script.

Finally... if the answer is NO to any of these questions, it's a scam:

1) Did he spend an hour going through the script and giving you detailed notes (for rewrites)
or
2) Did he ask to see your show-reel before offering you the directorial gig

If he didn't give you notes, if he didn't look at your show reel... then it's scam. If he just blew smoke up your ass about how brilliant your script is and then asked you for money, it's a scam.

Truth is, real producers don't ask for money from newbie screenwriters... nor do real agents.

Financing Scam?

ShawnMcLeod

clive